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Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $57,800 and purchasing department expenses of $57,800 of Cozy Bookstore
Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $57,800 and purchasing department expenses of $57,800 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $ 184,900 107,500 137,600 $ 430,000 Purchase Orders 816 476 408 1,700 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Complete this question by entering your answers in the tabs below. Allocation of Exp Alloc of Serv Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Advertising Department Books Magazines Newspapers Totals 0 0 0 Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Purchasing Department Books Magazines Newspapers Totals 0 0 Allocation of Exp Alloc of Serv Dept Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. (Amounts to be deducted should be indicated with minus sign.) COZY BOOKSTORE Departmental Expense Allocation Spreadsheet Expense Totals Advertising Purchasing Books $ 578,000 $ 57,800 $ 57,800 $ 138,700 Magazines Newspapers $ 115,600 $ 208,100 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 578,000 $ 57,800 $ 57,800 $ 138,700 $ 115,600 $ 208.100
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